Verizon activated close to 5.5 million Apple iPhones in Q4

Verizon recently filed SEC Form 8-K and made a few comments about the quarter that ended last month. According to the filing, Verizon activated a total of 9.8 million smartphones over the three month period with a higher mix of Apple iPhones in the total. Additionally, Big Red told the SEC that it added 2.1 million new post-paid subscribers on a net basis.

Considering that in the 2011 fourth quarter, the Apple iPhone comprised 55% of Verizon's smartphone activations, the "higher mix" of iPhone activations for the final three months of 2012 could be no less than 56%. Take that figure, multiply by the 9.8 million smartphones activated in Q4 and you cam easily calculate that Verizon activated 5.49 million units of Apple's iconic smartphone from October through December, 2012.

The Apple iPhone 4S

One negative impact on its results for the quarter is listed in the filing. Verizon said that it had higher indirect channel sales in the quarter during 2012 than in 2011. Those sales resulted in lower EBITDA service margins which might have exerted some downward pressure on the carrier's gross margins for the period, but probably not enough to seriously impact earnings for the three months.

AT&T continues to have a much higher mix of Apple iPhones in its smartphone activations. Last year, the Apple iPhone accounted for a whopping 82% of the operator's smartphone activations in the fourth quarter versus the aforementioned 55% at Verizon. This year's fourth quarter will show Apple's smartphone accounting for more than 80% of the mix at AT&T vs. the 56% at Verizon according to Chuck Jones, an analyst that covers the industry.

Interestingly, prior to the launch of the Apple iPhone 4S, the iPhone accounted for 56% of AT&T's smartphone activations. The next quarter, following the launch of the 5th generation iPhone, that percentage rose to the 82% that we already mentioned. The Apple iPhone 4S also jacked up the iPhone's share of the smartphone mix at Verizon from 36% of activations to 55% the very next quarter. Was Siri responsible for this?

So what percentage of smartphone activations at AT&T and Verizon does the Apple iPhone 5 represent? 81% and 61% respectively. You can say that the reason for the 20% gap between the the top two U.S. carriers dates back to AT&T's exclusive rights to the Apple iPhone in the U.S. from June 2007 through February 2011. Showing the power of advertising, there might be many Apple iPhone buyers in the states that immediately think of AT&T when they decide that they want to buy an Apple iPhone.

14.Droiddoes (unregistered)

Yes, yes it was. If we are talking specs then yes it was obsolete on launch day. I'll humor you though, and say three months after launch it is definitely obsolete. Quad core processors, 13mp cameras and dense ppi screens are going to be the standard this year for everything but iphone.There are already phones out that destroy the "retina display" as far as ppi goes.

23.Droiddoes (unregistered)

Well considering the iphone is basically just a fancy app launcher, has used the same OS since inception, and there have only been 6 models over the last 7 years I would hope it "comes together" nicely.

As a Android user I can't wait until my Note 2 is considered crap. I still remember when my Droid X was king of the hill 2 years ago and today I don't want to touch it. I would actually love to see Apple make a phablet to dethrone my Note 2 and move me into another ecosystem. But Apple does not have the guts and their afraid to go down that path.
I want the Samsung S4 to be a killer phone and the Note 3 to be even better. I take that back; I want any phone in 2013 to clearly whip my Note 2. I want to be wowed by a device that I use every waking hour. Releasing incremental "S" models is not the way to wow me. I upgrade every year and I don't want my upgrade to be similar to my last phone. The Nexus to the Note 2 was like upgrading from a Toyota Camry to a Toyota Landcruiser.

7.Droiddoes (unregistered)

5.Droiddoes (unregistered)

That sucks for VZN. Since apple is run by a greedy f*ck and retains 100% of the profits from iphone sales, VZN didn't make a dime off those 5.5mil units. In fact, when you factor in the labor to sell and activate the thing they actually lost money. And people wonder why VZN was instructing their sales team to push Android/BB/WP devices over iNovelties.

What are you talking about? Verizon, ATT, and Apple are all greedy. Have you check to see what you are paying each month to Verizon and ATT to have smartphone in your pocket for two year? $80-120 times 24. You do the math.

17.Droiddoes (unregistered)

Fascinating, but completely irrelevant to the point I'm making. Which is, apple does not share profits made off the iphone with the carriers or the retailers. HTC, Samsung, Motorola, Nokia, RIM, literally EVERY other manufacturer gives them some kind of incentive to sell their devices (revenue). apple gives them the "priveledge" of selling their crap.
It has absolutely NOTHING to do with the price of plans. Yes, I know excatly what I pay each month for service which is nothing because I get an awesome deal through work, but prior to that I paid $140 pm for two lines. Not a big deal, that really is not some grandiose sum of money.

Did you ever think those manufacturers give them an incentive because they have to? With exception of Samsung, what has the other manufacturers done over the past couple of years? Also, all the other manufacturers definitely would love to have the kind of leverage that Apple has. Its business and its how things are done depending on their position. If Motorola, RIM, and the others ever get in a position to where they can dictate the terms more favorably in their direction, trust me they will. Its business/economics 101. Check all the female emotions and see it for what it is dude.

24.Droiddoes (unregistered)

I understand completely how businesses work. Probably should ask yourself the same question. Im pretty sure VZ would love to make higher margins off the hardware they sale but if they want to sale the iPhone, its a reality that they have to live with and one that they obviously don't have to much of an issue with because they are definitely not going to drop the iPhone from their line up. If VZ has accepted the terms, you probably should to. I mean, I really don't see the issue here. You try to make it seem like VZ is some kind of victim when they will twist an arm just as fast as Apple or any other corporation if its in their best interest to. Its a dog eat dog world. Relax fellow fandroid!

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